“This interpretation leads to absurd situation”: ITAT Quashes Denial of Registration of Trust owing to Belated Filing [Read Order]
ITAT bench quashed the Commissioner’s rejection of the registration and directed the authorities to grant the trust exemption under Section 80G of the Income Tax legislation
![“This interpretation leads to absurd situation”: ITAT Quashes Denial of Registration of Trust owing to Belated Filing [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/10/ITAT-ITAT-Cochin-Denial-of-Registration-Income-tax-Income-Tax-Appellate-Tribunal-Charitable-Trust-taxscan.jpg "“This interpretation leads to absurd situation”: ITAT Quashes Denial of Registration of Trust owing to Belated Filing [Read Order]")
In a recent ruling, the Cochin Bench of the Income Tax Appellate Tribunal ( ITAT ) quashed the denial of registration to the appellant/assesee Gajanana Charitable Trust due to a delayed application. The Gajanana Charitable Trust, which was provisionally approved for exemption under Section 80G of the Income Tax Act, 1961 ( ITA ), on October 18, 2021, filed for permanent registration...
In a recent ruling, the Cochin Bench of the Income Tax Appellate Tribunal ( ITAT ) quashed the denial of registration to the appellant/assesee Gajanana Charitable Trust due to a delayed application.
The Gajanana Charitable Trust, which was provisionally approved for exemption under Section 80G of the Income Tax Act, 1961 ( ITA ), on October 18, 2021, filed for permanent registration on September 24, 2023. The Commissioner of Income Tax ( Exemption ), rejected the application, stating that it should have been submitted before the extended deadline of September 30, 2022, as per a Central Board of Direct Taxes ( CBDT ) circular.
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The CIT ( Exemption ) not only rejected the application but also canceled the provisional registration as the trust’s application was delayed by almost a year. The assessee who was aggrieved by the order passed by the CIT ( Exemption ), approached the ITAT for relief.
The counsel on behalf of the trust relied on a similar case before the ITAT Surat Bench, where the delayed application was excused. The Surat Bench had ruled that denying registration for such a reason would lead to undue hardship, especially since there were ambiguities in the CBDT's guidelines regarding deadlines.
The bench observed that following the Commissioner’s interpretation would mean that older trusts, which commenced operations long ago, would never be able to apply for registration, which was not the intent of the law.
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ITAT bench quashed the Commissioner’s rejection of the registration and directed the authorities to grant the trust exemption under Section 80G of the Income Tax legislation.
The ITAT bench comparing Soundararajan K ( Judicial Member ) and Waseem Ahmed ( Accountant Member ) allowed the appeal filed by the assessee.
To Read the full text of the Order CLICK HERE
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